In the New Classical Model

question 24

Multiple Choice

In the new classical model,

• A)wages and prices are sticky with respect to expected changes in the price level.
• B)a rise in the expected price level results in an immediate and equal rise in wages and prices.
• C)an anticipated increase in the money supply will increase aggregate output temporarily.
• D)unanticipated policy has no effect on aggregate output and unemployment.

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Definitions:

Petty Cash

A small amount of cash kept on hand used for paying minor or incidental expenses in a business setting.

Postage Expense

The cost incurred by a business for sending mail.

Role Expectations

Social norms regarding the behaviors and responsibilities associated with a particular social status or position.

Stepfamily Members

Individuals who become part of a family unit through the remarriage of a parent, including stepparents and stepchildren.